The Securities and Exchange Board of India (SEBI) has notified the new Alternative Dispute Resolution Mechanism (ADR) for speedy justice. The notification was issued on 3rd July 2023. The regulations may be called the Securities and Exchange Board of India (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023.
ADR is a mechanism used to resolve disputes or conflicts outside of traditional court litigation. The ADR methods are considered alternatives to formal legal proceedings and typically involve negotiation, mediation, arbitration, or other processes that encourage parties to reach a mutually agreeable solution. These mechanisms are commonly used in various fields, including business, labour, family, and community disputes.
17 SEBI Regulations subjected to amendment due to the new ADR mechanism
ADR methods Provided by SEBI
The dispute resolution methods chosen by the SEBI are meditation, conciliation or arbitration. The parties in dispute may select any one among the three.
Benefits of ADR Mechanism
The ADR mechanisms provide faster resolutions in comparison to traditional court proceedings, which can be lengthy and time-consuming due to complex legal procedures. They are typically more cost-effective, as they do not entail high court fees, attorney expenses, or prolonged trials. Moreover, methods like mediation and negotiation can be conducted privately, guaranteeing the confidentiality of sensitive information and safeguarding the privacy of the involved parties.
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